It’s no doubt that millennials have a huge impact on the nation’s economy. According to the U.S. Census, Millennials are people born between 1982 and 2000. This massive generation represents a fourth of the United State’s population and almost half of the nation’s working people. These realities aren’t something to overlook. Our friends at Rescour have recently published a post about Millennials and their impact on the Multifamily sector of commercial real estate. We invite you to read an excerpt from that post below, then click the green button at the bottom to read the full article.
Millennials have been talked about ad nauseum —from what they’re eating and wearing, to where they want to live and what they want to buy. But this group, which outweighs GenX by nearly 40% and has recently surpassed the Boomers, is still worth talking about. They’re driving all aspects of our economy —and that includes the multifamily sector.
HERE ARE SOME INTERESTING STATS ON MILLENNIALS:
Millennials make up 31% of home buyers, and 12% of home sellers.
Millennials are less likely to be homeowners than young adults in previous generations.
College-educated Millennials have moved into urban areas faster than their less educated peers
Millennials care about eco-friendly, “smart” homes in close proximity to their jobs
Millennial hotspots like Austin, Texas are seeing increased action, particularly in apartment construction. One report projected that Austin would see 14,200 new apartments between 2015 and 2017, a roughly 7 percent increase in the number of multifamily units already on the market. Further, between 2010 and 2013, Austin saw the number of multifamily permits increase by 361 percent.
Austin is not the only second-tier city being impacted by millennial growth. This group is flocking to second-tier cities (Dallas, Houston, Seattle, Raleigh-Durham) where it’s cheaper to live and jobs are easier to find. The multifamily markets in these communities have seen improved fundamentals as a result…